Fortescue cranks up production but market demands more

Updated
January 24, 2013 18:56:00

US tech giant, Apple, has delivered a huge profit result, but it wasn't big enough for the market. Shares in Apple fell in after hours trade. Similarly, Fortescue Metals in Australia delivered an increase in 3rd quarter iron ore production in a more challenging environment. Again though, shares fell as the market voiced its disapproval. Overall the local market made gains though, helped by a lift in Telstra and the major banks.

SALLY SARA: David Taylor joins me now for our look at today's business and finance.

David, Apple delivered a huge profit, but it wasn't good enough to satisfy the market. Tell us what happened.

DAVID TAYLOR: Sally, Apple shares actually fell nearly 10 per cent in after hours trade in New York after the tech company reported disappointing sales figures for the final three months of last year.

Now while Apple sold 48 million iPhones during the quarter, it wasn't good enough for markets. They wanted 50 million units. It sort of fed concerns that the company is losing its edge over its smart phone rivals that are coming through the market now.

And Sally, Apple posted - get this - a profit of $12.4 billion on revenue of $51.8 billion. Just huge numbers.

SALLY SARA: Disappointment comes with different numbers I guess, David. There's been a case of investment disappointment here in Australia as well. Tell us more about that.

DAVID TAYLOR: Well the iron ore producers who have got Rio Tinto, BHP Billiton and Fortescue Metals and there was a bit of concern about how much iron ore they would be able to dig up out of the ground and successfully ship off over the last three months of the year - that's 2012 I'm talking about.

It's turned out okay. Now Australia's basically three biggest iron ore miners have all lifted their sales and productions in those three months. Fortescue is the latest miner to report higher output for the three months of last year.

Today it announced iron ore shipments had jumped to 19.6 million tonnes. That's a third higher than the same period in 2011 and in line with analysts' expectations but unfortunately shares today closed 0.6 per cent lower to $4.63. So again, analysts and market wanted more.

SALLY SARA: Just finally, how did the market and the dollar perform overall today?

DAVID TAYLOR: Another good day for Telstra, up 1 per cent to $4.56 and finance and energy companies were also higher. The miners dragged on the markets today.

The All Ords up 21 points, or 0.45 per cent, to 4,833. The Australian dollar 105 US cents.